Margin fundings

This refers to the article `Brokers lure retail investors with margin funding' (Business Line, 20th May). It is the bounden duty of the stockbrokers, who form an inseparable part of the stock exchange system, to highlight the inconsistencies in trading activities to their clients.

There is an added liability on the part of the brokers in respect of those clients who avail of the `margin funding scheme'. The retail investors, especially the new ones, do not understand the risks involved and very often end up victims of the market's vagaries.

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